Fair Debt Collection Practices Act (FDCPA) staff letter: Beekman
Dec. 13, 1996 · Section 812 [1692j]
Topic: Furnishing deceptive forms
Staff opinion letters are informal views of FTC staff, not binding Commission rulings, and some were later superseded by statutory amendments (including the 2006 FDCPA amendments) or later guidance. Check current law before relying on any letter.
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Division of Credit Practices Bureau of Consumer Protection
December 13, 1996
John E. Beekman, Esq.
Springhouse Place
156 Pikeland Road
Malvern, PA 19355
Dear Mr. Beekman:
This replies to your letter of November 11, 1996, concerning the extent to which a debt collector must disclose, while collecting debts in its own name, its corporate connection with the creditor. The case you pose involves a debt collector that is a subsidiary of the parent company of the creditor.
While I am not aware of any cases on this point (although they may exist), my recommendation, to avoid any perceived misrepresentation, is for the debt collector to make the disclosure proposed in your letter, i.e., that the debt collector is a subsidiary of the parent company of the creditor. This would meet the objectives of Section 812 as well as alleviate any concerns that the collector, by using its own name in collecting debts, is "holding itself out" as a third party wholly independent of the creditor.
I hope this responds to your inquiry.
Sincerely,
John F. LeFevre Attorney
Source: FTC staff letter as archived by the U.S. National Archives web harvest, archived copy. Works of the U.S. government.